Export licensing is part of the world of export. If you have a product that does not fall in the spectrum of the 95% not needing an export license, chances are you will be in the 5% that will need to deal with process of applying for a license through the Bureau of Industry and Security (BIS). As one can find, after classifying a product in the Export Control Commodity Number (ECCN) you may not need a license. Technology and software commodities are no exceptions for immunity to an export license, but there are even some exceptions to the exemptions where the technology and software will end up needing a license. Technology and software that have export control restrictions can be exported without a license as long is the commodities meet some requirements.
Technology and Software Restricted (TSR) and Exceptions
Under Export Administration Regulations (EAR) § 740.6, the exemptions of technology and software restricted are dealt with together. "Restricted" means reason for control of the commodity would be listed as National Security (NS) and/or Antiterrorism (AT) under the ECCN. Reasons for control would be based on where the product is being exported to and it's origin. The scope is that exceptions apply to exports and reexports of the commodity. Exemptions requirements of TSR commodities include:
· Products that are being exported or reexported to Group B countries, which are listed in the EAR Supplement 1 part of 740. Countries included range from Afganhistan to Canada
· Technology and software is a direct product or from a factory or an origin of a Group B country.
· Software source code is a product of a Group B country.
· All commodities have to have a form of written assurance by the importer in order to export without a license.
When a License is Required for TSR Commodities
If the commodity does not meet the requirements of the exceptions, then a license would be required if
· The commodity has a direct origin of a Group D: 1 or Group E: 1 country.
· Software source code is a product of a Group D: 1 or Group E: 1 country
· The commodity is being exported or reexported to a Group D: 1 or E: 1 country
· A written assurance that is not received by BIS or not accepted due to the assurance not including in the license agreement that it is honored after expiration of the license.
Amy Breeman-Rhodes is owner and consultant with BreemanRhodes Consulting LLC, offering Administrative International Trade Support to businesses in the supply chain, for business development and import and export compliance needs. She is a US Licensed Customs Broker and Export Compliance Professional (ECoP) with over 18 years working in the import/export industry. Visit her website at http://www.breemanrhodesconsultingllc.com and her professional blog at http://breemanrhodes.wordpress.com
Amy is also an avid runner, running races from 5k to marathons and writes articles on running tips and plans.
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